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Will it be wise to make investment on my name or mother's name, to save tax?

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Dipanshu A

40 Points Posted on 03 December 2022

Hello,
I have question about tax applied on my earning and investments. I will be in already in 30% tax bracket as per my salary. My mother is selling her ancestral land worth 80 lac and that amount will be given to both of us brothers.
(1) Will me and my brother need to pay any tax on this, if she transfers the amount from her SBI saving account to our account?
(2) Instead of taking my share of 40 lac, if I leave it in her account only. My plan for this money is to invest in various instruments like FD, MF, etc. I want to know, if that would be a big difference in tax saving, if I invest from her account/name, instead of my name?
I will be in 30% bracket as per my salary. If I invest on my name, will its returns attract 30% tax deduction?
What would be advised?
Thanks

Replies (5)

Quick Summary

This discussion explores the tax implications of receiving a 40 lac inheritance and investing it. The original poster, in a 30% tax bracket, questions whether investing the funds in their own name or their mother's name would be more tax-efficient. Advice suggests that investing in the mother's name could potentially offer tax advantages, as her income bracket might be lower, thus reducing the overall tax liability on the investment returns.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121500 Points Posted on 03 December 2022

1. No..

2. Yes that can be good option.

3. No extra deduction.... it will be in 30% bracket only.

Dipanshu A

40 Points Posted on 03 December 2022

Originally posted by : Dhirajlal Rambhia
	1. No.. 2. Yes that can be good option. 3. No extra deduction.... it will be in 30% bracket only.

For third point, suppose if I get earning of 5 lac from this investment in a year along with my usual salary, I will need to pay 30% as tax on this 5 lac also (because my total income will keep me in 30% bracket). But if this money stayed and invested on mother's name, there will not be any deduction. Am I understanding it correct?
If this is true, it would be a very big benefit.